Morningstar, Inc.

For the period ended Mar 31, 2025. Filed May 1, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 1, 2025

MORN$246.47+0.1%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements

Unaudited Consolidated Statements of Income

	Three months ended March 31,
(in millions, except per share amounts)	2025	2024
Revenue	$581.9	$542.8
Operating expense:
Cost of revenue	231.4	218.1
Sales and marketing	112.6	104.6
General and administrative	76.5	80.3
Depreciation and amortization	47.3	47.2
Total operating expense	467.8	450.2
Operating income	114.1	92.6
Non-operating expense, net:
Interest expense, net	(5.4)	(11.5)
Net realized gains on sale of investments, reclassified from other comprehensive income	0.3	2.6
Other income (expense), net	(0.5)	3.3
Non-operating expense, net	(5.6)	(5.6)
Income before income taxes and equity in investments of unconsolidated entities	108.5	87.0
Equity in investments of unconsolidated entities	(2.6)	(1.5)
Income tax expense	27.4	21.3
Consolidated net income	$78.5	$64.2
Net income per share:
Basic	$1.83	$1.50
Diluted	$1.82	$1.49
Dividends per common share:
Dividends declared per common share	$0.46	$0.41
Dividends paid per common share	$0.46	$0.41
Weighted average shares outstanding:
Basic	42.8	42.7
Diluted	43.1	43.0

Unaudited Consolidated Statements of Comprehensive Income

	Three months ended March 31,
(in millions)	2025	2024
Consolidated net income	$78.5	$64.2
Other comprehensive income (loss), net
Foreign currency translation adjustment	17.0	(10.6)
Unrealized gains on securities:
Unrealized holding gains arising during period	0.2	1.9
Reclassification of net realized gains on investments included in net income	(0.2)	(1.9)
Other comprehensive income (loss), net	17.0	(10.6)
Comprehensive income	$95.5	$53.6

Consolidated Balance Sheets

(in millions, except share amounts)	As of March 31, 2025 (unaudited)	As of December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$511.5	$502.7
Investments	47.7	48.3
Accounts receivable, less allowance for credit losses of $8.5 million and $7.1 million, respectively	342.1	358.1
Income tax receivable	9.4	12.4
Deferred commissions	37.2	39.2
Prepaid expenses	53.5	42.1
Other current assets	10.9	11.3
Total current assets	1,012.3	1,014.1
Goodwill	1,601.1	1,562.0
Intangible assets, net	420.4	408.8
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $821.5 million and $790.4 million, respectively	221.6	218.9
Operating lease assets	172.1	181.2
Investments in unconsolidated entities	76.2	85.3
Deferred tax assets	45.9	43.2
Deferred commissions	27.6	26.6
Other assets	9.1	8.8
Total assets	$3,586.3	$3,548.9
Liabilities and equity
Current liabilities:
Deferred revenue	$595.3	$540.8
Accrued compensation	132.6	272.2
Accounts payable and accrued liabilities	92.6	87.3
Operating lease liabilities	37.7	35.1
Income tax payable	46.7	30.5
Other current liabilities	7.4	1.4
Total current liabilities	912.3	967.3
Operating lease liabilities	161.7	170.3
Accrued compensation	22.6	21.0
Deferred tax liabilities	29.8	27.6
Long-term debt	803.7	698.6
Deferred revenue	21.7	22.4
Income tax payable	12.5	11.7
Other long-term liabilities	12.8	11.4
Total liabilities	$1,977.1	$1,930.3
Equity:
Morningstar, Inc. shareholders’ equity:
Common stock, no par value, 200,000,000 shares authorized, of which 42,501,250 and 42,869,380 shares were outstanding as of March 31, 2025 and December 31, 2024, respectively	—	—

Accumulated other comprehensive loss:
Treasury stock at cost, 12,378,739 and 12,010,630 shares as of March 31, 2025 and December 31, 2024, respectively	(1,104.6)	(993.9)
Additional paid-in capital	847.8	822.7
Retained earnings	1,968.4	1,909.2
Currency translation adjustment	(102.3)	(119.3)
Unrealized loss on available-for-sale investments	(0.1)	(0.1)
Total accumulated other comprehensive loss	(102.4)	(119.4)
Total equity	1,609.2	1,618.6
Total liabilities and equity	$3,586.3	$3,548.9

Unaudited Consolidated Statements of Equity

For the three months ended March 31, 2025 and 2024

	Morningstar, Inc. Shareholders’ Equity
Accumulated Other Comprehensive Loss
Common Stock · Additional Paid-in Capital · Retained Earnings
(in millions, except share and per share amounts) · Shares Outstanding · Par Value · Treasury Stock · Total Equity
Balance as of December 31, 2024	42,869,380		$—		$(993.9)		$822.7		$1,909.2		$(119.4)		$1,618.6
Net income		—		—		—		78.5		—		78.5
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments, net of tax		—		—		—		—		0.2		0.2
Reclassification of realized gains on investments included in net income, net of tax		—		—		—		—		(0.2)		(0.2)
Foreign currency translation adjustment, net		—		—		—		—		17.0		17.0
Other comprehensive income, net		—		—		—		—		17.0		17.0
Issuance of common stock related to vesting of stock units, net of shares withheld for taxes on settlements of stock units	69		—		—		—		—		—		—
Reclassification of awards previously liability-classified that were converted to equity		—		—		16.0		—		—		16.0
Stock-based compensation		—		—		9.1		—		—		9.1
Common shares repurchased	(368,199)		—		(110.7)		—		—		—		(110.7)
Dividends declared ($0.46 per share)		—		—		—		(19.3)		—		(19.3)
Balance as of March 31, 2025	42,501,250		$—		$(1,104.6)		$847.8		$1,968.4		$(102.4)		$1,609.2

	Morningstar, Inc. Shareholders’ Equity
Accumulated Other Comprehensive Loss
Common Stock · Additional Paid-in Capital · Retained Earnings
(in millions, except share and per share amounts) · Shares Outstanding · Par Value · Treasury Stock · Total Equity
Balance as of December 31, 2023	42,728,182		$—		$(985.5)		$789.0		$1,610.8		$(86.5)		$1,327.8
Net income		—		—		—		64.2		—		64.2
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments, net of tax		—		—		—		—		1.9		1.9
Reclassification of realized gains on investments included in net income, net of tax		—		—		—		—		(1.9)		(1.9)
Foreign currency translation adjustment, net		—		—		—		—		(10.6)		(10.6)
Other comprehensive loss, net		—		—		—		—		(10.6)		(10.6)
Issuance of common stock related to vesting of stock units, net of shares withheld for taxes on settlements of stock units	17,388		—		—		(3.2)		—		—		(3.2)
Reclassification of awards previously liability-classified that were converted to equity		—		—		10.8		—		—		10.8
Stock-based compensation		—		—		11.4		—		—		11.4
Dividends declared ($0.41 per share)		—		—		—		(17.3)		—		(17.3)
Balance as of March 31, 2024	42,745,570		$—		$(985.5)		$808.0		$1,657.7		$(97.1)		$1,383.1

Unaudited Consolidated Statements of Cash Flows

	Three months ended March 31,
(in millions)	2025	2024
Operating activities
Consolidated net income	$78.5	$64.2
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	47.3	47.2
Deferred income taxes	(6.9)	(7.5)
Stock-based compensation expense	9.1	11.4
Provision for bad debt	2.5	1.4
Equity in investments of unconsolidated entities	2.6	1.5
Other, net	(1.1)	(11.0)
Changes in operating assets and liabilities:
Accounts receivable	17.3	13.7
Accounts payable and accrued liabilities	0.2	(4.3)
Accrued compensation and deferred commissions	(120.5)	(79.2)
Income taxes, current	20.1	16.3
Deferred revenue	47.9	50.0
Other assets and liabilities	(6.0)	(10.1)
Cash provided by operating activities	91.0	93.6
Investing activities
Purchases of investment securities	(3.3)	(7.2)
Proceeds from maturities and sales of investment securities	4.5	17.4
Capital expenditures	(32.2)	(34.1)
Acquisitions, net of cash acquired	(38.5)	—
Purchases of investments in unconsolidated entities	(1.2)	(2.8)
Cash used for investing activities	(70.7)	(26.7)
Financing activities
Common shares repurchased	(109.6)	—
Dividends paid	(19.5)	(17.3)
Proceeds from revolving credit facility	145.0	90.0
Repayment of revolving credit facility	(40.0)	(105.0)
Repayment of term facility	—	(8.1)
Employee taxes withheld for stock awards	—	(3.2)
Other, net	—	0.1
Cash used for financing activities	(24.1)	(43.5)
Effect of exchange rate changes on cash and cash equivalents	12.6	(7.6)
Net increase in cash and cash equivalents	8.8	15.8
Cash and cash equivalents—beginning of period	502.7	337.9
Cash and cash equivalents—end of period	$511.5	$353.7
Supplemental disclosure of cash flow information
Cash paid for income taxes	$14.2	$12.5
Cash paid for interest	$6.4	$11.5

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.